Vantage Drilling CO - FORM 8-K - EX-99 - PRESS RELEASE DATED AUGUST 3, 2011.

Attached files

file	filename
8-K - Vantage Drilling CO	rrd319127.htm

Vantage Drilling Company Reports Second Quarter 2011 Results

HOUSTON, TX--(MARKET WIRE)-August 3, 2011 -- Vantage Drilling Company ("Vantage") (AMEX:VTG) reports a net loss of $14.9 million or ($0.05) per share, excluding $25.2 million ($0.09 per share) of charges associated with refinancing of debt. Including the refinancing charges, the Company reported a net loss of $40.1 million or ($0.14) per diluted share for the three months ended June 30, 2011.This compares to a net loss of $(7.0) million or $(0.03) per diluted share for the three months ended June 30, 2010.

For the six months ended June 30, 2011, Vantage reports a net loss of $33.5 million or ($0.11) per share, excluding $25.2 million ($0.09 per share) of charges associated with refinancing of debt. Including the refinancing charges the Company reported a net loss of $58.7 million or ($0.20) per share as compared to a net loss of $(1.0) million or $(0.00) per share for the six months ended June 30, 2010.

Paul Bragg, Chairman and Chief Executive Officer, commented, "We had a solid quarter with high productive time across the fleet. The Platinum Explorer achieved over 95% productive time and the jackup fleet achieved over 99% productive time for the quarter. We are also extremely pleased to add to our fleet, the Tungsten Explorer, which is being built at the DSME shipyard."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.

Public & Investor Relations Contact:

Paul A. Bragg

Chairman & Chief Executive Officer

Vantage Drilling Company

(281) 404-4700

Vantage Drilling Company Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited)
				Three Months Ended June 30,				Six Months Ended June 30,
				Three Months Ended June 30,				Six Months Ended June 30,
				2011		2010		2011		2010
Revenues
	Contract drilling services		$	97,808	$	48,702	$	184,520	$	89,060
	Management fees			3,171		4,437		7,214		8,875
	Reimbursables			19,946		15,215		53,780		28,669
	Total revenues			120,925		68,354		245,514		126,604
Operating costs and expenses
	Operating costs			65,264		40,705		142,615		71,364
	General and administrative			7,402		4,934		14,249		9,409
	Depreciation			16,025		8,366		32,137		15,843
	Total operating expenses			88,691		54,005		189,001		96,616
Income (loss) from operations				32,234		14,349		56,513		29,988
Other income (expense)
	Interest income			22		3		60		15
	Interest expense and financing charges			(39,350)		(13,331)		(80,892)		(21,316)
	Loss on debt extinguishment			(25,196)		-		(25,196)		-
	Other income			(22)		338		1,458		950
	Total other income (expense)			(64,546)		(12,990)		(104,570)		(20,351)
Income (loss) before income taxes				(32,312)		1,359		(48,057)		9,637
Income tax provision (benefit)				7,758		8,355		10,667		10,671
Net income (loss)		$		(40,070)	$	(6,996)	$	(58,724)	$	(1,034)

Earnings (loss) per share
	Basic		$	(0.14)	$	(0.03)	$	(0.20)	$	-
	Diluted		$	(0.14)	$	(0.03)	$	(0.20)	$	-

Vantage Drilling Company Consolidated Balance Sheet (In thousands, except par value information)

			June 30,		December 31,
			2011		2010
			(Unaudited)
	ASSETS
Current assets
	Cash and cash equivalents	$	114,496	$	120,443
	Restricted cash		6,203		29,004
	Trade receivables		86,492		50,190
	Inventory		22,155		19,760
	Prepaid expenses and other current assets		7,343		11,472
	Total current assets		236,689		230,869
Property and equipment
	Property and equipment		1,880,243		1,762,844
	Accumulated depreciation		(76,849)		(44,712)
	Property and equipment, net		1,803,394		1,718,132
Other assets
	Other assets		58,698		54,193
	Total other assets		58,698		54,193
Total assets		$	2,098,781	$	2,003,194

	LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Accounts payable	$	41,726	$	32,332
	Accrued liabilities		84,871		75,159
	Short-term debt		3,430		8,574
	Total current liabilities		130,027		116,065
Long-term debt, net of discount of $42,489 and $63,654			1,242,511		1,103,480
Other long-term liabilities			12,401		13,498
Commitments and contingencies			-		-
Shareholders' equity
	Preferred shares, $0.001 par value, 10,000 shares authorized; none issued or outstanding		-		-
	Ordinary shares, $0.001 par value, 400,000 shares authorized; 290,662 and 289,713 shares issued and outstanding		291		290
	Additional paid-in capital		856,971		854,557
	Accumulated deficit		(143,420)		(84,696)
	Total shareholders' equity		713,842		770,151
Total liabilities and shareholders' equity		$	2,098,781	$	2,003,194

Vantage Drilling Company Consolidated Statement of Cash Flows (In thousands) (Unaudited)
			Six Months Ended June 30,
			2011		2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss		$	(58,724)	$	(1,034)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
	Depreciation expense		32,137		15,843
	Amortization of debt financing costs		3,888		1,952
	Non-cash loss on debt extinguishment		3,532		-
	Share-based compensation expense		2,415		3,050
	Accretion of long-term debt		2,582		2,508
	Amortization of debt discount		5,415		588
	Deferred income tax expense (benefit)		(128)		1,712
Changes in operating assets and liabilities:
	Restricted cash		22,801		1,685
	Trade receivables		(36,303)		(41,706)
	Inventory		(2,396)		(3,566)
	Prepaid expenses and other current assets		4,130		4,145
	Other assets		897		(1,490)
	Accounts payable		9,394		10,979
	Accrued liabilities		8,093		3,857
	Short-term debt		-		1,467
	Net cash used in operating activities		(2,267)		(10)
CASH FLOWS FROM INVESTING ACTIVITIES
	Additions to property and equipment		(116,876)		(16,375)
	Investment in joint venture		-		(8,804)
	Net cash used in investing activities		(116,876)		(25,179)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from issuance of senior secured notes, net		240,750		-
	Repayment of long-term debt		(109,716)		(16,968)
	Proceeds from issuance of ordinary shares in public offerings, net		-		47,578
	Repayment of short-term debt		(5,145)		(2,725)
	Debt issuance costs		(12,693)		(273)
	Net cash provided by financing activities		113,196		27,612
	Net increase (decrease) in cash and cash equivalents		(5,947)		2,423
	Cash and cash equivalents-beginning of period		120,443		15,992
	Cash and cash equivalents-end of period	$	114,496	$	18,415

Attached files

Vantage Drilling CO Reports

Also read